Car FinanceCars

The Smartest Way To Finance Your Car When Your Funds Are Low

Businessman looking at engine under the car bonnet. Car broken down at side of road in countryside

Cars are an essential part of everyday life for many, enabling commutes to and from work and school.

If anything should happen to your car, and you’re unable to fix or replace it, it can have a serious knock on effect. It’s therefore important to be able to get mobile as quickly as possible.

Financing your car

A variety of options are available to you when it comes to financing your car. Whether you use a personal loan, credit card, PCP deal, or splash the cash outright, you can finance your dream car at a price that suits you.

Yet, after spending all that money on the perfect vehicle, it’s hard to believe that the expenses don’t stop there. As well as fuel, insurance, and car maintenance, we must factor in other car-related costs, such as unexpected repairs and MOT service into our budget. However, covering the cost of car finance can often be challenging when we have little disposable income. So, what are the smartest options when your funds are low?

Funding your car

According to the Association of British Insurers (ABI), the average price for comprehensive car insurance in the UK is £468 per year, while the average price for a gallon of petrol is £1.45. So, while some car expenses are unavoidable, you can shop around for the best deals on car insurance and compare prices to get a cheaper rate. As for fuel, you can take preventative measures to ensure that it lasts as long as possible. Keeping your tyres inflated is a good start, as lower tyre pressure increases the drag on a car, meaning you’ll need to refuel more often. Clearing out the junk from your boot will also save you some more money, as the lighter your car is, the easier it is to accelerate. Thus, you’ll burn through less fuel if you ease up the acceleration, thus reducing your fuel consumption.

You can also save money by performing a Pre-MOT check on your vehicle so that you don’t fail your MOT over minor repairs that you can quickly fix at home. Things like tyres, windscreen wiper fluid, and car bulbs can be topped up at home.

When disaster strikes

Imagine you’re cruising down the road in your flash new motor, the wind in your hair, not a care in the world, when suddenly disaster strikes. Your tyre has blown out, there’s fluid leaking from your car, the red light is flashing at you on your dashboard, and the stench of gas fills your nostrils. It’s probably time to take a trip to the garage.

The cost of an unexpected repair can set you back quite a lot when your budget has already been stretched in every which way for your car. Splitting your repair costs into regular instalments can help with budgeting, allowing you to avoid the upfront costs of vehicle maintenance which can often take you out of pocket. Companies like Bumper work with trusted dealerships, garages, and independent mechanics all over the UK. They can help you cover repairs, services, MOTs, accessories, and parts, in interest-free monthly payments. Even with low funds, you can still finance your car affordably.

About author

Master of the budgets. Provider of the tips. Author and owner of DumbFunded.co.uk.
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